Second Mortgage Refinance Program

﻿The Second Mortgage Refinance Program (SMRP) is a statewide foreclosure prevention program designed to assist employed North Carolina homeowners whose second mortgage has become unaffordable due to unemployment, under-employment, or another program-eligible financial hardship.

The SMRP will provide a zero-interest, non-recourse, deferred-payment, subordinate loan that will pay down or extinguish an existing second mortgage to achieve a monthly payment that is less than or equal to thirty-six percent (36%) of the homeowner’s current gross monthly income. The maximum SMRP loan amount is $30,000.

What is a Program Eligible Financial Hardship - A program-eligible financial hardship is an event or condition that has caused a reduction in income that is likely to improve in the foreseeable future (i.e. illness, death of a co-borrower, divorce or separation).

The homeowner must meet eligibility and program underwriting guidelines and must also complete a hardship affidavit.

Note: If the homeowner has already entered into a Home Affordable mortgage modification with a 2MP Servicer, he or she would not be eligible for the Second Mortgage Refinance Program.​